EV tax hike set to spur buying spree
The government's plan to raise excise taxes on imported electric vehicles (EVs) from Jan 1 next year is expected to trigger a year-end buying spree, as consumers rush to beat the higher levies, says the Federation of Thai Industries (FTI).
The Thai government plans to raise excise taxes on imported electric vehicles (EVs) starting January 1st of next year, according to the Federation of Thai Industries (FTI). The FTI anticipates a buying surge before the new tax rates take effect, as consumers aim to secure lower rates. The cabinet recently approved higher taxes for imported battery EVs and range-extended EVs, increasing them from 10% to 35% and 15% to 35%, respectively.
This move aims to shield domestic automakers and stimulate investment in Thai EV production, particularly benefiting manufacturers with facilities in Thailand. The FTI emphasizes the need for measures to prevent market distortions, like a potential spike in imports before the year-end that could dampen demand in 2027. Additionally, the tax hike may impact the pickup market, as consumers might switch to EVs to avoid higher taxes.
The Excise Department is implementing a pickup trade-in subsidy program, but the FTI questions its effectiveness and suggests more flexible financing options to boost auto loan access.
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